SK Innovation Takes $2.6B Asset Impairment Charge After Ending Ford Battery JV

SK Innovation announced it has recorded a one-time asset impairment loss of KRW 3.7 trillion (approximately USD 2.6 billion) following the termination of its U.S. battery joint venture with Ford Motor Company. The original project, valued at USD 11 billion, planned to build three battery plants and one electric pickup truck factory in the United States. The two companies officially ended their partnership in December 2023. Under the new arrangement, Ford will take over the two plants in Kentucky, while SK On will continue operating the Tennessee facility, which is expected to begin producing energy storage system (ESS) batteries in 2028 and supply batteries for Ford’s range-extended electric vehicles. Although this restructuring has resulted in short-term losses—SK On’s operating loss widened to KRW 441.4 billion in Q4 last year—it will enable SK Innovation to write off approximately KRW 5.4 trillion in debt and improve its financial structure. Following the announcement, the company’s share price dropped as much as 4.5%. In response to slowing EV adoption in Europe and the U.S., SK Innovation is pivoting toward new business areas such as energy storage systems, logistics electric vehicles, and humanoid robots, aiming to secure 20 GWh of ESS orders this year.